1. SWOT Analysis: MP3 Player
Henry Buckham
Strengths
- The new MP3 player streams directly
from Spotify, which allows instant
access to millions of songs with a
subscription.
- Simple to use, being a process of
linking a Spotify account and then
streaming music.
- Likely to be sold cheaper than the
iPod to undercut their sales.
- Songs can be added to the device
straight from the computer and not
through iTunes, which some people
find a hassle to use.
Opportunities
- The new MP3 player has a chance to
take a market share comprised of
people who do not want to buy an iPod,
or those who cannot afford one.
- Could very well be the first device
that has its service be solely streamed
from an online provider, which could
open up a new market.
- Cheaper price will attract those who
do not want to pay the premium for
Apple products.
Weaknesses
- To stream songs the MP3 player will
need a constant internet connection
unless songs are saved to the device, in
which case a large storage capability
will be needed.
- Spotify is not free and requires a paid
subscription, which will put of some
people who will not want to pay a
second time (after paying for the
device itself.)
- Device is quite simple in regards to
being streaming based and could
benefit from some new, innovative
features.
Threats
- Competing in a market dominated by
Apple, who produces the extremely
popular and successful iPod. The iPod
accounts for a majority of music player
sales worldwide. In particular, the iPod
Classic is very popular thanks to its
simplicity and huge 160GB storage
capability.
- Brand loyalty to Apple will make it
difficult to win over some die-hard
customers and owners of the iPod, who
may be sceptical of the new product.
- Apple may develop their own
streaming service in response to the
new device, turning customers away
from the main selling point of the new
device.
